Washington, D.C. – October 1, 2013 – (RealEstateRama) — Five additional state agencies began using the new National SAFE MLO test today, bringing the total number of state agencies to 35 who have implemented this new test.
The five state agencies adopting the new National SAFE MLO test today are:
• The District of Columbia Department of Insurance, Securities and Banking;
• The Hawaii Division of Financial Institutions;
• The Mississippi Department of Banking & Consumer Finance;
• The Texas Office of Consumer Credit Commissioner; and
• The Texas Department of Savings & Mortgage Lending.
Twenty state agencies initially adopted the National SAFE MLO test in April, and an additional 10 state agencies adopted the test in July.
The test, which was first made available on April 1, 2013, combines both the national and state testing requirements of the SAFE Act and streamlines the license application process for mortgage loan originators (MLOs) seeking licenses in multiple states. The new test replaces the separate, state-specific test for the states that adopt it. In addition, a short version of the uniform state test (the stand-alone UST) is available to take for a limited time.
More information on the National SAFE MLO test is available here.
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires mortgage loan originators (MLOs) to pass the SAFE MLO test before they can be licensed with a state agency through the Nationwide Mortgage Licensing System and Registry (NMLS). Prior to April 2013, the test was comprised of two parts: a national component and a state component. In addition to passing the national component, MLOs seeking to hold licenses in multiple states were required to pass the state component for each state in which they wished to do business. Under the new National SAFE MLO Test with uniform state content, a license applicant who passes the test will not need to take any additional state-specific tests to hold a license within participating states. A separate version of the test, the Stand-alone UST, is available for existing licenses who may wish to seek licenses in additional states.
To date, a total of 35 state agencies are using the UST. An additional two state agencies are scheduled to adopt the test by Jan. 2014. Remaining state agencies will continue to require state-specific test components, though additional states are eventually expected to adopt the National SAFE MLO Test with uniform state content.